Correlation Between Binance Coin and ULT
Can any of the company-specific risk be diversified away by investing in both Binance Coin and ULT at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Binance Coin and ULT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and ULT, you can compare the effects of market volatilities on Binance Coin and ULT and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Binance Coin with a short position of ULT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and ULT.
Diversification Opportunities for Binance Coin and ULT
-0.96 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Binance and ULT is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and ULT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ULT and Binance Coin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Binance Coin are associated (or correlated) with ULT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ULT has no effect on the direction of Binance Coin i.e., Binance Coin and ULT go up and down completely randomly.
Pair Corralation between Binance Coin and ULT
If you would invest 55,400 in Binance Coin on January 21, 2024 and sell it today you would earn a total of 280.00 from holding Binance Coin or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Binance Coin vs. ULT
Performance |
| Timeline |
| Binance Coin |
| ULT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Binance Coin and ULT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and ULT
The main advantage of trading using opposite Binance Coin and ULT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, ULT can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ULT will offset losses from the drop in ULT's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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